Use what you have learned about the time value of money to analyze each of the following decisions: Decision #1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive: Option A: Receive a one-time gift of $ 9000 today. Option B: Receive a $1400 gift each year for the next 10 years. The first $1400 gift would be received 1 year from today. Option Receive a one-time gift of $18,000 10 years from today. Compute the Present Value of each of these options if you expect the Interest rate to be 3% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Option A would be worth $ today Option B would be worth $ today. Option C would be worth $ today. Financial theory supports choosing Option Compute the present Value of each of these options if you expect the interest rate to be 7% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Worth today. Styles Detal Edit Compute the Present Value of each of these options If you expect the Interest rate to be 7% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Option A would be worth $ today. Option B would be worth $_ today Option C would be worth $ today. Financial theory supports choosing Option Compute the Present Value of each of these options if you expect to be able to earn 10% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Option A would be worth $ today Option B would be worth $ today. Option C would be worth $ today. Financial theory supports choosing Option Decision #2 begins at the top of page 21 1 Calar Fee 12 AA AAE 3.11 A2-A- Decision Het manning for Metirement . Evan and Morgan are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would walt at least 10 years and then start investing $1800 per year to prepare for retirement Morgan just told Evan, though, that she had heard that they would actually have more money the day they retire if they put $1800 per year away for the next 10 years and then simply let that money se for the next 35 years without any additional payments - then they would have MORE when they retired than if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do). Please help Even and Morgan make an informed decision: Assume that all payments are made at the END of the year, and that the rate of return on all yearly Investments will be 8.4% annually. Please do NOT ROUND when entering "Rate" for any of the questions below) a) How much money will Evan and Morgan have in 45 years if they do nothing for the next 30 years, then put $1800 per year away for the remaining 35 years? b) How much money will Evan and Morgan have in 10 years if they put $1800 per year away for the next 10 years? 52) How much will the amount you just computed grow to fit remains invested for the remaining 35 years, but without any additional yearly deposits being made? D